Fidelity D & D Bancorp, Inc. (FDBC): Business Model Canvas [Dec-2025 Updated]

You're looking to map the actual mechanics of a successful community bank, and Fidelity D & D Bancorp, Inc. (FDBC) is a perfect case study for how local focus beats scale. Honestly, it's about relationships, not just balance sheet size; they manage $2.7 billion in assets, yet their value proposition hinges on local decision-making across their 21 offices. We'll look past the press releases to see how they generate revenue, like the $18.4 million in Net Interest Income in Q3 2025, while maintaining quality with non-performing assets sitting low at 0.23% as of Q1 2025. This Business Model Canvas breaks down their key resources and revenue streams so you can see their strategy clearly-keep reading to see the whole picture.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that keep Fidelity D & D Bancorp, Inc. running smoothly, especially as the bank manages its $2.7 billion in total assets as of mid-2025. These partnerships are critical for extending reach and capability beyond the bank's 21 full-service community banking offices.

Correspondent banks for liquidity and services.

While specific correspondent bank names aren't public record here, the need for these relationships is clear given the asset growth. The loans and leases portfolio increased by $37.9 million between December 31, 2024, and June 30, 2025. This growth requires robust back-end support for clearing and settlement, which correspondent banks provide.

Local business associations like The Greater Scranton Chamber of Commerce.

Fidelity D & D Bancorp, Inc. maintains active relations with organizations like The Greater Scranton Chamber of Commerce. This local engagement supports the bank's mission of serving consumer and business clients across Lackawanna, Luzerne, and Northampton Counties in Pennsylvania.

Core technology providers for digital banking platforms.

Fidelity Bank supports a digital and virtual experience through its Online Banking and Fidelity Mobile Banking app. Although specific core technology vendors aren't detailed, the digital offering is a key part of their service delivery, which is essential for a bank with a Client Care Center serving clients via telephone and chat.

Government agencies for Small Business Administration (SBA) loans.

Fidelity Bank operates as an SBA Preferred Lender, streamlining the government-backed loan process. This status is a significant partnership for accessing capital for small businesses. For example, in the third quarter of 2025, the team secured over $7 million in SBA financing across eight successful loans. This activity aligns with broader national trends, where SBA 7(a) approvals reached over $10 billion in the second quarter of FY2025 (January through March 2025).

Here's a quick look at some key financial figures from the 2025 reporting periods:

The bank's focus on relationship-driven lending is supported by these government programs. What this estimate hides is the specific dollar amount Fidelity D & D Bancorp, Inc. pays to its core technology partners annually.

Key aspects of the bank's operational structure that rely on these external relationships include:

• Maintaining a low non-performing asset ratio: 0.13% of total assets as of June 30, 2025.
• Servicing clients across five counties in Pennsylvania.
• Utilizing digital services for account opening.
• Participating in nationwide SBA lending, securing funding in states like North Carolina and Ohio in Q3 2025.

Finance: draft 13-week cash view by Friday.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Key Activities

Relationship-driven underwriting and loan portfolio expansion.

The loans and leases portfolio grew by $113.5 million between December 31, 2024, and September 30, 2025. For the first quarter of 2025, the portfolio increased by $16.3 million. The interest income from the loan portfolio saw a quarterly average balance increase of $129.2 million in Q3 2025, alongside a 16 basis points increase in the fully-taxable equivalent (FTE) loan yield. The company reported a $2.6 million increase in FTE interest income from the loan portfolio in Q3 2025.

Deposit gathering and liability management.

Total deposits reached $2.435 billion as of June 30, 2025. In Q1 2025, deposit growth of $116.6 million was utilized to fund loan growth and increase interest-bearing cash balances. Checking deposit balances specifically rose by $21.7 million in the first quarter of 2025, representing more than half of total deposits as of March 31, 2025. The ratio of insured and collateralized deposits to total deposits was approximately 75% at the end of Q1 2025.

Managing a $2.7 billion asset base effectively.

Total assets for Fidelity D & D Bancorp, Inc. stood at $2.7 billion as of September 30, 2025. The management focus includes maintaining strong credit metrics while managing the asset base. The company reported non-performing assets of $3.0 million, or 0.11% of total assets, by the end of the third quarter of 2025. Shareholders' equity increased by 12% to $229.3 million at September 30, 2025, compared to December 31, 2024.

Providing specialized wealth management and trust services.

Fidelity D & D Bancorp, Inc. maintains a personal and corporate trust department. For the third quarter of 2025, non-interest income reached $5.1 million. In the first quarter of 2025, total non-interest income was $5.0 million, up 9% from the prior year, with $0.2 million attributed to wealth management fees and $0.1 million to interchange fees.

• Non-interest income for Q3 2025: $5.1 million.
• Wealth management fees contribution in Q1 2025: $0.2 million.
• Net profit margin for the latest year: 27.9%.
• Trailing 12-month revenue as of September 30, 2025: $88.2M.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Key Resources

The foundation of Fidelity D & D Bancorp, Inc.'s operations rests on significant tangible and intangible assets. As of September 30, 2025, the balance sheet reflected total assets of $2.7 billion. This asset base is supported by a robust capital structure, with shareholders' equity reported at $229.3 million for the third quarter of 2025. You can see the scale of the balance sheet in the table below.

Physical infrastructure remains a core resource, anchoring Fidelity D & D Bancorp, Inc.'s community focus. The company maintains a network of 21 full-service community banking offices. These offices serve key regional markets, specifically Lackawanna, Luzerne, and Northampton Counties, with an additional presence in Schuylkill County via the Fidelity Bank Wealth Management Minersville Office. That physical footprint is essential for local relationship banking.

Intangible assets, particularly human capital, are critical for executing the business strategy. Fidelity D & D Bancorp, Inc. relies on its seasoned banking professionals who possess deep regional market ties, which is how they build and maintain client trust over time. For instance, the recent addition of Charles Hangen as Senior Vice President and Chief Risk Officer on November 3, 2025, shows a commitment to strengthening key leadership areas. This team is the engine behind the reported growth in net interest income and loan portfolio expansion.

The key tangible and human resources supporting the business model include:

• Total Assets: $2.7 billion (Q3 2025).
• Shareholders' Equity: $229.3 million (Q3 2025).
• Physical Footprint: 21 full-service community banking offices.
• Human Capital: Seasoned professionals with deep regional ties.
• Recent Addition: New Chief Risk Officer joined November 3, 2025.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Value Propositions

Personalized, relationship-driven banking and credit solutions.

Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank. The bank emphasizes personal relationships and customized banking solutions. The Q1 2025 results reflected strong net income primarily driven by accelerated loan and deposit growth and improvement in net interest margin. You see this commitment in their dividend action, too; they announced an increase of 7.5% for the Fourth Quarter 2025 dividend, marking eleven consecutive years of raising dividends.

Full suite of consumer, commercial, and wealth management products.

Fidelity D & D Bancorp, Inc. offers an array of services to meet client needs. The lending portfolio includes specific products for businesses and consumers. The bank also provides full-service Trust & Investment Departments and a Mortgage Center. The product mix supports the relationship focus, as seen in the revenue breakdown.

• Deposit products include traditional checking and savings accounts, money market accounts, and certificates of deposit.
• Loan products include commercial real estate loans and residential mortgage loans.
• Specialized cash management solutions are available for businesses.
• Wealth management fees contributed $0.2 million to non-interest income in Q1 2025.
• Checking deposits remained more than half of total deposits as of March 31, 2025.

Local decision-making and commitment to Northeastern Pennsylvania's sustainability.

Fidelity Bank operates offices throughout Lackawanna, Luzerne, and Northampton Counties, along with the Fidelity Bank Wealth Management Minersville Office in Schuylkill County. The institution is dedicated to contributing positively to the sustainability of Northeastern Pennsylvania. A full-service Client Care Center supports those clients who prefer to transact business via telephone, chat or online, extending the local relationship model virtually.

Financial stability with low non-performing assets of 0.23% (Q1 2025).

The bank maintains a conservative regional banking strategy, which is reflected in its credit quality metrics as of the first quarter of 2025. The overall asset base was $2.7 billion as of March 31, 2025. The commitment to credit quality supports the earnings power, with Q3 2025 net income reaching $7.3 million, or $1.27 per diluted share.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Customer Relationships

Fidelity D & D Bancorp, Inc. explicitly bases its growth on a long-term targeted relationship strategy. This focus is cited as the driver behind deposit growth, which included an increase of $21.7 million in non-interest-bearing checking accounts for the first quarter of 2025. As of March 31, 2025, checking deposit balances still represented more than half of total deposits.

The bank prides itself on offering personalized financial guidance and advisory services, which is a core component of its mission to serve as a trusted financial partner. This high-touch approach is supported by a physical and virtual infrastructure designed to maintain close client contact. The company has 289 employees.

High-touch service is delivered through its physical footprint and dedicated support centers. Fidelity D & D Bancorp, Inc. operates through The Fidelity Deposit and Discount Bank, which serves individuals, families, and businesses across its core markets.

The physical and virtual service points as of mid-2025 include:

The commitment to the community, which underpins these relationships, is also quantified by non-financial metrics. For instance, the bank reported providing over 5,960 hours of volunteer time.

The focus on relationship quality is reflected in asset quality metrics. As of the end of the third quarter of 2025, non-performing assets were reduced to $3.0 million, representing only 0.11% of total assets.

The service model emphasizes accessibility across multiple channels:

• Dedicated bankers supporting loan and deposit growth.
• Full-service Trust & Investment Departments available.
• Mortgage Center operations.
• Digital services via Online Banking and the Mobile Banking app.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Channels

You're looking at how Fidelity D & D Bancorp, Inc. gets its services to the people who need them, which is a mix of old-school presence and modern convenience. As of late 2025, the physical footprint remains a cornerstone of their community-focused approach.

The core physical channel involves 21 full-service community banking offices. These branches are strategically located across the core counties Fidelity D & D Bancorp, Inc. serves, specifically Lackawanna, Luzerne, Northampton, and Lehigh Counties. This physical network supports the relationship-driven underwriting they emphasize. To be fair, this physical presence is balanced by specialized, dedicated locations, like the Fidelity Bank Wealth Management Minersville Office in Schuylkill County.

Digital channels are definitely where the day-to-day transactional volume flows. Fidelity D & D Bancorp, Inc. offers a complete digital experience through its Online Banking platform and the Fidelity Mobile Banking app. You can use these tools for standard account management, plus the convenience of remote deposits. This digital layer supports the overall business, which, as of September 30, 2025, managed total assets of $2.7 billion.

The virtual branch concept is solidified by the Client Care Center. This is a full-service operation, running 24-hour, 7 day a week, to assist clients who prefer transacting or opening accounts via telephone or chat. You can reach them at 1-800-388-4380.

Specialized services are funneled through dedicated centers to ensure expert advice. You find a dedicated Mortgage Center for lending needs and separate Wealth Management offices, which include Trust & Investment Departments, for more complex financial planning.

Here's a quick snapshot of the channel distribution as reported through mid-2025:

The way clients interact with Fidelity D & D Bancorp, Inc. shows a clear segmentation of service level:

• For routine transactions: Digital channels and the 24/7 Client Care Center.
• For local relationship building: The 21 physical community banking offices.
• For complex needs: Specialized Mortgage Center and Wealth Management offices.

The operational efficiency suggested by the Q3 2025 net profit margin of 27.9% is partly supported by managing these diverse access points effectively.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Customer Segments

You're looking at the core groups Fidelity D & D Bancorp, Inc. serves across its operational footprint in Northeastern and Eastern Pennsylvania. The bank's strategy hinges on deep local relationships, which you can see reflected in its market penetration within its core counties.

Consumers and individuals in Lackawanna, Luzerne, and Northampton Counties

This segment represents the bedrock of the deposit base. Fidelity D & D Bancorp, Inc. maintains a physical presence designed to capture local consumer banking needs. As of June 30, 2025, the bank operated 21 full-service community banking offices across Lackawanna, Luzerne, Lehigh, and Northampton Counties, plus a dedicated Wealth Management office in Schuylkill County. For context on their local strength, as of June 30, 2024, they held a 15.70% deposit market share in Lackawanna County, ranking 2nd in that market. Still, their presence in Luzerne County was 6.14% (ranking 8th), and in Northampton County, it was 7.12% (ranking 6th). The Consumer segment also includes home equity installment loans and lines of credit.

The bank supports these individuals with traditional banking services, including checking and savings accounts, and digital access via the Fidelity Mobile Banking app.

Small to mid-sized commercial businesses

Serving the local business community is a major focus, broken down into the Commercial and Industrial segment and the Commercial Real Estate segment. This group relies on the bank for lending and treasury management. To give you a sense of their lending activity, Fidelity D & D Bancorp, Inc. originated $560.6 million in total loans and lines of credit during the 2024 fiscal year. By September 30, 2025, the total loans and leases portfolio had grown by $113.5 million since the end of 2024, showing continued focus on this asset class. The bank's total assets stood at $2.7 billion as of September 30, 2025, providing the capital base for these commercial relationships.

The bank's operational segments directly serving this group include:

• Commercial and Industrial lending.
• Commercial Real Estate financing.
• Business account management.

High-net-worth individuals and families (Wealth Management clients)

This group requires more sophisticated services than standard retail banking. Fidelity D & D Bancorp, Inc. caters to them through its Wealth Management division, which integrates investment strategies, estate planning, and trust services. The bank has a personal and corporate trust department. Trust fees contributed to the non-interest income, which for the third quarter of 2025 was $5.1 million.

The services offered to this segment are comprehensive:

• Full-service Trust & Investment Departments.
• Investment management and brokerage services.
• Estate planning and tax-efficient financial strategies.

Residential real estate borrowers

This segment is served through the Mortgage Center and the Residential Real Estate lending segment. This lending operates as a secured first lien position on the borrower's residential property. The overall loan and lease portfolio growth, which was $113.5 million as of September 30, 2025, reflects activity across all lending categories, including residential mortgages. The bank's commitment to this area is supported by its overall asset quality, with non-performing assets reduced to 0.13% of total assets as of the second quarter of 2025.

Here's a quick look at the scale and operational context for these customer segments as of mid-to-late 2025:

The bank's focus on relationship-based strategies is designed to secure sticky deposits and high-quality loans from these defined groups. Finance: draft 13-week cash view by Friday.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the operations for Fidelity D & D Bancorp, Inc. as of late 2025. For a regional bank like Fidelity D & D Bancorp, Inc., the cost of funding its business and paying its people are the major levers.

Interest expense on deposits and other interest-bearing liabilities represents a significant portion of the overall cost base. For the nine months ended September 30, 2025, the total interest expense saw an increase of $1.9 million compared to the prior year period. This was largely driven by a $3.4 million rise in interest expense paid on deposits, reflecting a larger average balance of interest-bearing deposits, which was partially offset by a $1.4 million decrease in interest expense on borrowings. To put a finer point on the cost of funding, the overall cost of interest-bearing liabilities settled at 2.52% for those nine months in 2025. That's the cost of the money Fidelity D & D Bancorp, Inc. uses to lend out.

The costs associated with the team are substantial, especially given the relationship-focused model. Significant personnel costs for branch and advisory staff are reflected in the non-interest expense figures. For instance, salaries and benefits expense increased by $0.6 million for the third quarter of 2025 alone, primarily attributed to higher banker incentives. Fidelity D & D Bancorp, Inc. maintains a physical footprint to support these personnel and client relationships.

The operating costs for maintaining 21 physical branch locations are a fixed component of the cost structure. Fidelity D & D Bancorp, Inc. serves its core markets through 21 full-service community banking offices, plus a Wealth Management office in Schuylkill County. These premises are a necessary cost to deliver the in-person service that underpins the community bank model. Premises and equipment expense specifically contributed to the overall non-interest expense growth, rising by $0.2 million in the third quarter of 2025 compared to the same quarter in 2024.

Overall, non-interest expense, which captures many of these operating costs, increased by $2.8 million, or 7%, for the nine months ended September 30, 2025, reaching $43.9 million. For just the third quarter of 2025, non-interest expenses totaled $14.6 million. Here's the quick math on the major components of the nine-month non-interest expense change:

You can see the cost structure is heavily influenced by both the cost of money and the cost of the people delivering the service. The key cost drivers that management is watching include:

• Interest expense paid on deposits, which rose by $3.4 million year-to-date September 30, 2025.
• Salaries and benefits expense, driven by banker incentives.
• The fixed overhead associated with maintaining the 21 community banking offices.
• The overall non-interest expense base, which hit $43.9 million for the nine months ended September 30, 2025.

If onboarding takes 14+ days, churn risk rises, but for Fidelity D & D Bancorp, Inc., keeping the branch staff effective is definitely a top cost priority.

Finance: draft 13-week cash view by Friday.

Fidelity D & D Bancorp, Inc. (FDBC) - Canvas Business Model: Revenue Streams

You're looking at how Fidelity D & D Bancorp, Inc. brings in the money, which for a regional bank like this, really boils down to the spread between what they earn on assets and what they pay on liabilities, plus the fees they charge for services. Honestly, the core engine is the Net Interest Income.

For the third quarter of 2025, the Net Interest Income from loans and investment securities totaled $18.4 million. This was a strong showing, representing a 19% increase over the same period in the prior year. The growth here was driven by a $3.4 million rise in interest income, largely due to a $196.9 million increase in the average balance of interest-earning assets.

Next up is Non-Interest Income from fees, which reached $5.1 million for the third quarter of 2025. This figure was up slightly, about 3%, compared to the third quarter of 2024. It's important to see where that $5.1 million came from, as it shows the breadth of their fee-based services.

Here's a quick look at the primary revenue drivers for Fidelity D & D Bancorp, Inc. for the third quarter ended September 30, 2025:

The Non-Interest Income stream is made up of several distinct fee categories that support the core lending business. You'll want to track these components closely:

• Wealth management and trust fees, which saw an increase in the quarter.
• Interchange fees, also contributing positively to the quarter's non-interest income.
• Loan service charges, which were noted as being lower in the quarter.
• Gains on sold loans, which also saw a decrease.

So, while the interest income from the loan portfolio is the biggest piece, the $5.1 million in fee income shows the value derived from their full-service offering, including trust and interchange activities. If onboarding takes 14+ days, churn risk rises, which impacts the stability of those recurring fee streams.